00:01
Okay, so we're depositing $1 ,000 into an account paying 7 % interest.
00:06
So that's my interest rate, and that's going to be 0 .07.
00:12
The $1 ,000 deposit, that's my principle.
00:15
I have continuous compounding, and i want to solve for time if i want the account to have $1 ,500 in it.
00:23
So continuous compounding tells me that i'm going to use the pert formula, p times e to the rt, so p is my principal, that's the starting amount or $1 ,000.
00:35
E is part of the formula.
00:37
Interest rate is 0 .07.
00:40
We're solving for t.
00:41
We want to know when that 1 ,000 will equal 1 ,500.
00:46
Divide both sides by 1 ,000, so you have 1 .5 equals e to the 0 .07t.
00:54
Now take the ln of both sides...